Why Are People Buying Houses Together?

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Why Are People Buying Houses Together?

Jul 13, 2023 | News | 0 comments

When contemplating the idea of buying a home, our minds tend to gravitate toward the more traditional circumstances. These can include purchasing a starter home independently or taking the leap after getting married or starting a family.

Traditionally, we associate homeownership with either embarking on the journey alone or with a significant other. However, a new trend has emerged that is gaining popularity: purchasing a house with friends.

This trend is particularly prevalent among millennials, who are often delaying marriage and parenthood while taking on mortgages with friends.

Although the trend of co-buying houses with friends is on the rise, it does not necessarily indicate a favorable state of the housing market. In fact, the increasing unaffordability of homeownership is a concern, especially when compared to how much more accessible it was decades ago.

It is evident that the current situation reflects a housing crisis, with a notable scarcity of available properties that shows no signs of being resolved in the near future. As a result, individuals attempting to purchase a home often encounter obstacles such as being priced out or facing fierce competition in bidding wars.

Millennials employ innovative solutions to overcome the economic challenges that can impede their path toward homeownership, embracing co-buying as an effective strategy.

The National Association of Realtors (NAR) reports a steady increase in the number of buyers purchasing homes as unmarried couples during the pandemic. As people took the time to reassess their living arrangements, many renters sought more space. Instead of opting for a roommate and continuing to rent, they considered the idea of purchasing a home as a more advantageous alternative.

For individuals with a single income, buying a home on their own may not always be feasible. In fact, a significant portion of adults who are not in a couple earn lower incomes compared to their peers.

To address this challenge, one option is to collaborate with a friend or roommate to divide the cost of a home in half. By doing so, individuals can increase their chances of potential homeownership, even if they have limited savings.

Another way to reduce expenses is by adopting a communal living model, where individuals share household utilities and other living expenses.

While co-buying houses with friends presents an intriguing approach to homeownership during a time when it may seem unachievable, it is important to acknowledge that this method has its challenges and drawbacks.